IFC invests ₹860 cr in India’s first sustainability bonds issued by Dice InvIT

Issued by Dice Highways Belief (Dice InvIT), one in all India’s largest highway sector-focussed infrastructure funding trusts (InvITs), sustainability-linked bond is a debt instrument whose monetary phrases are linked to the issuer’s pre-defined sustainability or environmental, social, and governance (ESG) objectives.

This SLB—the primary by a highway InvIT in India—will fund the acquisition of NAM Expressway Restricted (NAM), a strategic freeway connecting Chennai and Hyderabad, and assist Dice Highways Belief’s long-term company aims, together with sustainability and inclusion initiatives. 

As anchor investor, IFC’s funding is about to mobilize further capital, serving to drive developments in India’s highway infrastructure whereas upholding international ESG requirements.

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As demand for mobility to maneuver individuals and items round rises, transport-related emissions are additionally prone to swell. Sustainability-linked finance (SLF) gives an modern resolution by aligning financing with sustainability efforts, linking proceeds to measurable outcomes, and driving significant progress towards a sustainable highway transport sector.

In a press release, Vinay Sekar, CEO of Dice InvIT, mentioned, “This transaction demonstrates Dice InvIT’s potential to execute upon its technique of deploying its debt capability on accretive acquisitions; NAM is characterised by robust site visitors fundamentals and positioned strategically because the shortest route between Chennai and Hyderabad. The SLB additionally showcases the pioneering function performed by Dice Highways together with its longstanding accomplice IFC, in inculcating sustainable administration practices within the Indian highways sector.”

Imad N. Fakhoury, regional director for South Asia, IFC, mentioned, “Because the anchor investor, IFC is devoted to fostering development and long-term resilience in India’s highway networks with a deal with measurable influence. This collaboration highlights the vital function of InvITs in increasing and diversifying sources of funding throughout the highway sector. At IFC, we’re dedicated to advancing modern financing options that assist sustainable growth throughout India’s infrastructure panorama.”

Pankaj Vasani, Group CFO of Dice InvIT, mentioned, “This milestone strengthens Dice InvIT’s management in sustainable infrastructure finance, making it one of many first freeway InvITs to combine sustainability into its funding technique. This financing marks the primary in a sequence of SLBs that Dice InvIT intends to subject, which intention to drive the transformation of India’s freeway infrastructure whereas upholding the very best environmental, social, and governance requirements.”

Investor data

IFC, a member of the World Financial institution Group, is the most important international growth establishment centered on the non-public sector in rising markets. In fiscal 12 months 2024, IFC dedicated a document $56 billion to non-public firms and monetary establishments in creating nations.

Jason Pellmar, regional business supervisor for infrastructure, India, Bhutan and Maldives, IFC, mentioned, “Investing in sustainable highway infrastructure is important for accelerating India’s financial development, enhancing connectivity, and boosting international competitiveness by way of environment friendly logistics. By partnering with Dice Highways Belief on this landmark SLB, IFC is facilitating modern financing options that mobilize non-public sector funding and elevate infrastructure requirements. This initiative goals to strengthen India’s highway community and contribute to a extra sustainable and resilient future.”

Dice Highways Belief is backed by a diversified investor base, together with I Squared Capital, British Columbia Funding Administration Company, Abu Dhabi’s sovereign investor Mubadala Funding Firm, and Japan Highways Worldwide BV.

Dice Highways Belief is engaged in implementing the public-private partnership mannequin within the nation’s highways sector to function and handle freeway initiatives in affiliation with the central and state governments.